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Economics · May / June 2025 · Paper 11 · Question 5

2281Price changes

Good weather results in an increase in the demand for and supply of peaches. How will this affect the price and quantity traded in the market for peaches?

  1. Aprice of peaches: fall; quantity of peaches traded: fall
  2. Bprice of peaches: rise; quantity of peaches traded: rise
  3. Cprice of peaches: rise; quantity of peaches traded: uncertain
  4. Dprice of peaches: uncertain; quantity of peaches traded: rise

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Correct answer: D. price of peaches: uncertain; quantity of peaches traded: rise

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